Java Console's "Install Shortcuts" grayed Out

Be gentle, new here :)

We have a long standing Jave app that runs fine under XP. Of course we are getting new W7 machines now. On most of the new Win 7 machines the app launches and installs fine (via a web-based JNLP file install). However, on some it refuses to install the desktop icon for the application.

I checked that Java Console showed Allow for install shortcuts but no luck. A possible clue is that on these machines that dont successfully install the desktop shortcut during install, in the Java Console going to General > View the "Install Shortcut" options are grayed out and unavailable.

Current JAVA version loaded for all systems that isntall cirrectly and incorrectly.